A day removed from the 2nd Presidential Debate stocks move higher led by Energy and Information Technology stocks. Crude oil jumped to a 51 handle after the Russians reportedly will join an oil production pact. We have yet to see a real deal struck, but anything is possible. We continue to see strength from the NASDAQ stocks while S&P 500 stocks still remain in neutral. We’ll need to see volume pour into the market tomorrow pushing our major indexes higher building on today’s price gains. If we are to continue to remain in new high territory, we need to see follow-through from this market.
Sentiment continues to be quite negative out in blogosphere. Perhaps the ton of this election, like many others are simply wearing traders thin. We are also heading into the thick of earnings season and earnings are not expected to be big. Earnings tend to be known as the mother’s milk of the market and earnings have been falling. We can point to many different areas of risk, but with the Federal Reserve willing to provide a backstop there is no reason to panic sell. Today, in Business Insider a “top technical analyst” wrote this market is eerily similar to 1987 prior to the crash. Talk about negative sentiment. The likelihood of a collapse is small and if we were to have an issue we have our exit strategy. Stay the course and ride this wave higher.
Hard to put much stock into today’s action given the holiday. Many schools observe this day as a holiday and many were looking to take a long weekend. Tomorrow we should see majority of market participants back and ready for action.
This fourth quarter should provide us with plenty of opportunity to make gains. It is whether or not we want to execute. Trying to be a hero will only lead to diminished results. Stay with Big Wave Trading and we’ll get you through this unusual market. Go out and have a great week!
